1. (a) The Board shall acknowledge only one horsemen's organization for each breed of racehorse, except Thoroughbreds, as the organization empowered exclusively to contract with racing association for the conduct of a race meeting. No person shall serve as an officer or director of an acknowledged horsemen's organization, other than in an honorary capacity, at the same time such person serves as an officer or director of a licensed racing association or as an officer or director of any entity which is a principal shareholder of any licensed racing association.

2. (b) Upon the filing with the Board of a notice of intent by an alternate horsemen's organization whose membership is 1500 members or more, the alternate horsemen's organization, shall have not more than six (6) months from the date of filing to acquire, on a petition, signatures of ten percent (10%) of the existing organization's licensed members. The alternate horsemen's organization petitioning to decertify an existing horsemen's organization whose membership is fewer than 1500 shall have not more than six (6) months from the date of filing to acquire, on a petition, signatures of thirty percent (30%) of the existing organization's licensed members.

   1. (1) The notice of intent shall contain the name of the horsemen's organization, the names of the principals of the horsemen's organization, the date of filing, the articles of incorporation and a copy of the petition as it will be circulated.
   2. (2) No more than one (1) petition by any alternate horsemen's organization to decertify an existing horsemen's organization shall be circulated at any given time.

3. (c) Upon receipt of a petition that meets the criteria in subsection (b) of this Rule, the Board shall consider the petition, and shall validate the signatures found on said petition. Validation includes, but is not limited to, verification of current CHRB license numbers and signature verification.

   1. (1) If the validated signatures are found to meet the requirements of subsection (b) in this Rule, the Board shall thereupon establish a date and conduct an election among the existing organization's licensed members.
   2. (2) If the validated signatures do not meet the requirements of subsection (b) in this Rule, the Board shall notify the alternate and the existing horsemen's organization that no further action shall be taken on the petition.
4. (d) A deciding vote of fifty percent (50%) plus one (1) of the ballots returned shall be used to determine the one organization to be acknowledged as representing the organization's licensed members.
5. (e) Except for good cause, the Board shall not conduct an election within eighteen (18) months of a prior election among the organization's licensed members.

The Board recognizes the need for horse owners and trainers to negotiate and to covenant with racing associations regarding the conditions for each race meeting, the distribution of commissions and purses not governed by statutory distribution formulas, and other matters relating to welfare, benefits and prerogatives of the parties to the agreement. To fulfill its duties to the public in authorizing the conduct of an uninterrupted, orderly race meeting during the licensed term of such meetings, the Board shall acknowledge one respective horsemen's organization that represents horse owners and trainers of each separate breed of racehorse that competes in such meetings except Thoroughbreds. The Board shall acknowledge separate horsemen's organizations for owners and trainers of Thoroughbred racehorses as defined in Section 19613 of the Business and Professions Code.

Note: Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401(a) and (e), 19613, 19613.1, 19613.2 and 19613.3, Business and Professions Code.

History

1. New article 22 (sections 2040-2045) filed 4-12-79; designated effective 7-1-79 (Register 79, No. 15).

2. Amendment of section and Note filed 6-2-94; operative 7-2-94 (Register 94, No. 22).

3. Amendment of section heading, section and Note filed 9-22-95; operative 10-22-95 (Register 95, No. 38).